Certified Documentary Credit Specialist

Certified Documentary Credit Specialist (CDCS)

Practice Test Session Number XXXXX

This practice test paper is a small sample of the type of questions you will encounter in the actual test paper. This test represents one third of the actual test and should take no longer than 1 hour to complete. Please refer to the CDCS study guide for information on the structure and number of questions that will appear in the actual test paper. This practice test paper consists of two sections: Section A and Section B. Section A consists of 22 multiple choice questions worth one mark each. Section B consists of:

??3 stand alone analysis questions worth one mark each;

??1 in-basket exercise with five related questions, each question worth one mark; ??1 simulation exercise worth a maximum of five marks.

The in-basket and simulation supporting documentation are incorporated within this practice test paper. Please note that if you are taking the actual test in paper form there will be separate documentation for each in-basket and simulation.

For questions in both Section A and Section B you should assume that, unless otherwise stated, there are NO Bank Holidays, Saturdays and Sundays are NOT banking days and all transactions take place within the same year. UCP600 applies throughout.

INSTRUCTIONS TO CANDIDATES

1. Read the instructions on both sides of the answer sheet carefully.

2. Do NOT open this exam paper or the in-basket / simulation booklets until instructed to do so.

3. Identify the discrepancies for each simulation on the attached relevant checklist then transfer your answers to the main answer sheet. You may write in the simulation booklet and the question paper.

4. Before you leave the examination room you must hand in all the examination materials including the answer sheet, the question paper and the simulation booklets and have them checked by the invigilator. Failure to do so will invalidate your entry.

A qualification jointly examined and awarded by the ifs School of Finance and the International Financial Services Association. Endorsed by the International Chamber of Commerce.

CDCS Practice Test

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Section A

1. A documentary credit for USD 120,000 calls for shipment of fertiliser in February, March, April and May. Each shipment is to be for about 500 tonnes. Shipment was effected as follows:

1. 450 tonnes sent 24 February for value USD 27,000. 2. 550 tonnes sent 12 April for value USD 33,000. 3. 460 tonnes sent 30 April for value USD 28,000.

4. 550 tonnes sent 04 June for value USD 33,000.

Which of the above shipments will be honoured on presentation? A 1 only. B 1 and 3 only. C 2 and 4 only. D 1, 2 and 3 only.

2. In accordance with ISP98, which of the following statements is correct? The issuer of a standby letter of credit MUST:

A validate the breach of any underlying transaction. B ensure the accuracy of any documents presented. C ensure the genuineness of any documents presented. D honour presentations that appear on their face to comply.

3. A reimbursing bank has received a valid claim under its reimbursement undertaking and is instructed by the issuing bank NOT to honour the claim. In accordance with the URR725, the reimbursing bank should: A request the claiming bank to cancel the claim. B instruct the claiming bank to contact the beneficiary. C honour the claim and debit the issuing bank's account. D dishonour the claim as per the issuing bank's instruction.

4. An importer requires goods of a stipulated quality while the exporter requires certainty of payment. Which of the following would BEST meet all requirements?

A Confirmed standby credit payable on demand calling for beneficiary's quality certificate. B Confirmed documentary credit payable at sight calling for beneficiary's quality certificate. C Confirmed documentary credit available by acceptance with drafts drawn on confirming bank calling for third party quality certificate.

D Unconfirmed documentary credit payable at sight with drafts on issuing bank calling for third party quality certificate.

5. An irrevocable confirmed documentary credit CANNOT be amended or cancelled without the agreement of the: A Beneficiary and applicant only. B Confirming bank and issuing bank only. C Applicant, confirming bank and issuing bank. D Beneficiary, confirming bank and issuing bank.

CDCS Practice Test

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6. Which of the following can be combined under a credit available with and requiring a draft drawn on an issuing bank? 1. Payment.

2. Deferred payment. 3. Acceptance. 4. Negotiation. A 1 and 2 only. B 1 and 3 only. C 2 and 3 only.

D 3 and 4 only.

7. In accordance with UCP600, which of the following terms may NOT be altered on a transferred documentary credit? The: A amount.

B required documents. C period for presentation. D amount of insurance cover.

8. A cumulative revolving documentary credit is opened with six months' validity and allowing for USD 25,000 to be drawn each month. If only the first month's shipment is effected in full, what is the available amount in the fourth month? A USD 0. B USD 25,000. C USD 75,000. D USD 100,000.

9. A documentary credit which allows partial shipments has the following shipment schedule:

1,000 units shipped between 01 June and 30 June. 2,000 units shipped between 01 July and 31 July. 2,000 units shipped between 01 August and 31 August. 3,000 units shipped between 01 September and 30 September.

The beneficiary shipped the goods and presented documents as follows: 1. 1,000 units shipped on 15 June documents presented on 30 June. 2. 3,000 units shipped on 15 July and presented on 28 July. 3. 2,000 units shipped on 31 July and presented on 15 August.

4. 3,000 units shipped on 15 September and presen …… 此处隐藏：7753字，全部文档内容请下载后查看。喜欢就下载吧 ……